Yahoo Finance Some Shareholders May Object To A Pay Rise For Atlanticus Holdings Corporation's (NASDAQ:ATLC) CEO This Year
Key Insights
Atlanticus Holdings will host its Annual General Meeting on 7th of May
CEO Jeff Howard's total compensation includes salary of US$850.0k
Total compensation is 37% below industry average
Atlanticus Holdings' EPS declined by 0.03% over the past three years while total shareholder loss over the past three years was 17%
Performance at Atlanticus Holdings Corporation (NASDAQ:ATLC) has not been particularly rosy recently and shareholders will likely be holding CEO Jeff Howard and the board accountable for this. The next AGM coming up on 7th of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.
See our latest analysis for Atlanticus Holdings
How Does Total Compensation For Jeff Howard Compare With Other Companies In The Industry?
Our data indicates that Atlanticus Holdings Corporation has a market capitalization of US$387m, and total annual CEO compensation was reported as US$2.0m for the year to December 2023. We note that's a small decrease of 6.4% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$850k.
For comparison, other companies in the American Consumer Finance industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$3.3m. In other words, Atlanticus Holdings pays its CEO lower than the industry median. Moreover, Jeff Howard also holds US$16m worth of Atlanticus Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$850k | US$850k | 41% |
Other | US$1.2m | US$1.3m | 59% |
Total Compensation | US$2.0m | US$2.2m | 100% |
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Atlanticus Holdings pays out 41% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Atlanticus Holdings Corporation's Growth
Atlanticus Holdings Corporation saw earnings per share stay pretty flat over the last three years. In the last year, its revenue is down 8.2%.
Its a bit disappointing to see that the company has failed to grow its EPS. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Atlanticus Holdings Corporation Been A Good Investment?
Since shareholders would have lost about 17% over three years, some Atlanticus Holdings Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Atlanticus Holdings that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
